Sabine Pass LNG Profits Soar 80% on Robust Revenue Growth

TL;DR

**Sabine Pass is crushing it, buy the dip if you can find one, LNG demand is through the roof!**

AI Summary

Sabine Pass Liquefaction, LLC reported a significant increase in revenue and net income for the three and six months ended June 30, 2025. Total revenues for the second quarter of 2025 surged to $2.406 billion, a 30.4% increase from $1.845 billion in the same period of 2024. This growth was primarily driven by a substantial rise in revenues from non-related parties, which increased to $1.857 billion in Q2 2025 from $1.454 billion in Q2 2024. Net income attributable to Sabine Pass Liquefaction, LLC for the second quarter of 2025 was $1.208 billion, a robust 79.8% increase from $672 million in Q2 2024. For the six months ended June 30, 2025, total revenues reached $5.344 billion, up from $4.089 billion in the prior year, and net income was $2.924 billion, compared to $1.653 billion in the first half of 2024. The company's derivative assets increased to $148 million from $161 million year-over-year, while derivative liabilities decreased to $47 million from $62 million, indicating improved hedging positions. The strategic outlook remains positive, supported by strong demand for Liquefied Natural Gas (LNG) and effective cost management, with cost of goods and services (excluding depreciation) rising to $555 million in Q2 2025 from $725 million in Q2 2024, reflecting operational efficiencies.

Why It Matters

This strong performance by Sabine Pass Liquefaction, LLC signals robust demand in the global LNG market, benefiting investors through increased profitability and potentially higher returns. For employees, sustained growth could mean job security and expansion opportunities within the natural gas distribution sector. Customers, particularly international buyers, are likely experiencing reliable supply from a key player, though pricing dynamics remain crucial. In the broader market, Sabine Pass's success underscores the critical role of U.S. LNG exports in global energy security, intensifying competition with other energy providers and potentially influencing future infrastructure investments.

Risk Assessment

Risk Level: low — The company demonstrates a low risk profile due to significant increases in net income and revenue. Net income surged by 79.8% to $1.208 billion in Q2 2025 from $672 million in Q2 2024, and total revenues grew by 30.4% to $2.406 billion in Q2 2025 from $1.845 billion in Q2 2024, indicating strong financial health and operational efficiency.

Analyst Insight

Investors should consider increasing their exposure to Sabine Pass Liquefaction, LLC or its parent entities, given the substantial revenue and net income growth. The strong financial performance suggests a favorable market position and effective management in the natural gas distribution sector.

Financial Highlights

revenue

$2.406B

net Income

$1.208B

revenue Growth

+30.4%

Revenue Breakdown

Key Numbers

• $2.406B — Q2 2025 Total Revenues (Increased 30.4% from $1.845B in Q2 2024)
• $1.208B — Q2 2025 Net Income (Increased 79.8% from $672M in Q2 2024)
• $5.344B — H1 2025 Total Revenues (Increased from $4.089B in H1 2024)
• $2.924B — H1 2025 Net Income (Increased from $1.653B in H1 2024)
• $1.857B — Q2 2025 Non-related Party Revenue (Increased from $1.454B in Q2 2024)
• $555M — Q2 2025 Cost of Goods and Services (excluding depreciation) (Decreased from $725M in Q2 2024, indicating efficiency)
• $148M — Derivative Assets (Decreased from $161M, reflecting hedging positions)
• $47M — Derivative Liabilities (Decreased from $62M, reflecting improved hedging positions)

Key Players & Entities

• Sabine Pass Liquefaction, LLC (company) — filer of the 10-Q
• $2.406 billion (dollar_amount) — total revenues for Q2 2025
• $1.845 billion (dollar_amount) — total revenues for Q2 2024
• $1.208 billion (dollar_amount) — net income for Q2 2025
• $672 million (dollar_amount) — net income for Q2 2024
• $5.344 billion (dollar_amount) — total revenues for H1 2025
• $4.089 billion (dollar_amount) — total revenues for H1 2024
• $2.924 billion (dollar_amount) — net income for H1 2025
• $1.653 billion (dollar_amount) — net income for H1 2024
• 0001499200 (company) — Central Index Key (CIK) for Sabine Pass Liquefaction, LLC

FAQ

Industry Context

The Liquefied Natural Gas (LNG) market is experiencing strong global demand, driven by energy security concerns and the transition to cleaner fuels. Sabine Pass Liquefaction operates in a competitive landscape with other major LNG export facilities, requiring efficient operations and strategic market positioning to maintain its market share.

Regulatory Implications

As a major energy infrastructure operator, Sabine Pass Liquefaction is subject to various environmental and safety regulations. Compliance with these regulations is critical to avoid operational disruptions and potential penalties. Changes in energy policy or international trade agreements could also impact its business.

What Investors Should Do

1. Monitor operational efficiency metrics.
2. Analyze hedging strategy effectiveness.
3. Evaluate the growth drivers for non-related party revenue.

Glossary

Liquefied Natural Gas (LNG)

Natural gas that has been cooled down to liquid form at a very low temperature, making it easier to transport and store. (Sabine Pass Liquefaction's core business involves the liquefaction of natural gas for export.)

Derivative Assets/Liabilities

Financial instruments whose value is derived from an underlying asset, index, or rate. Used for hedging risks like price fluctuations. (The company's positions in derivative assets and liabilities indicate its strategies to manage financial risks associated with its operations.)

Cost of Goods and Services (excluding depreciation)

Direct costs incurred in producing goods or services, excluding non-cash depreciation charges. (A decrease in this metric suggests improved operational efficiency or lower input costs for Sabine Pass Liquefaction.)

Year-Over-Year Comparison

Sabine Pass Liquefaction, LLC has demonstrated robust year-over-year performance. Total revenues for Q2 2025 increased by 30.4% to $2.406 billion compared to $1.845 billion in Q2 2024, driven significantly by a 27.7% rise in non-related party revenue. Net income saw an even more impressive surge of 79.8%, reaching $1.208 billion from $672 million, indicating improved profitability. Furthermore, the company has shown enhanced operational efficiency, with its cost of goods and services (excluding depreciation) decreasing from $725 million to $555 million, contributing to margin expansion.

Filing Documents

• spl-20250630.htm (10-Q) — 1002KB
• exhibit311splq22025form10q.htm (EX-31.1) — 9KB
• exhibit312splq22025form10q.htm (EX-31.2) — 9KB
• exhibit321splq22025form10q.htm (EX-32.1) — 4KB
• exhibit322splq22025form10q.htm (EX-32.2) — 4KB
• 0001499200-25-000011.txt ( ) — 5586KB
• spl-20250630.xsd (EX-101.SCH) — 44KB
• spl-20250630_cal.xml (EX-101.CAL) — 43KB
• spl-20250630_def.xml (EX-101.DEF) — 221KB
• spl-20250630_lab.xml (EX-101.LAB) — 428KB
• spl-20250630_pre.xml (EX-101.PRE) — 310KB
• spl-20250630_htm.xml (XML) — 956KB

Financial Information

Part I. Financial Information Item 1.

Financial Statements

Financial Statements 2 2 Balance Sheets 3 4 5

Notes to Financial Statements

Notes to Financial Statements 6 Note 1—Nature of Operations and Basis of Presentation 6 Note 2—Trade and Other Receivables, Net of Current Expected Credit Losses 7 Note 3—Inventory 7 Note 4—Property, Plant and Equipment, Net of Accumulated Depreciation 7 Note 5—Derivative Instruments 7 Note 6—Accrued Liabilities 10 Note 7—Debt 11 Note 8—Revenues 12 Note 9—Related Party Transactions 14 Note 10—Segment Information and Customer Concentration 15 Note 11—Supplemental Cash Flow Information 15 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 16 Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 22 Item 4.

Controls and Procedures

Controls and Procedures 23

Other Information

Part II. Other Information Item 1.

Legal Proceedings

Legal Proceedings 24 Item 1A.

Risk Factors

Risk Factors 24 Item 6. Exhibits 24

Signatures

Signatures 25 i Table of Contents DEFINITIONS As used in this quarterly report, the terms listed below have the following meanings: Common Industry and Other Terms ASU Accounting Standards Update DOE U.S. Department of Energy EPC engineering, procurement and construction FASB Financial Accounting Standards Board FERC Federal Energy Regulatory Commission FID final investment decision FTA countries countries with which the United States has a free trade agreement providing for national treatment for trade in natural gas GAAP generally accepted accounting principles in the United States Henry Hub the final settlement price (in U.S. dollars per MMBtu) for the New York Mercantile Exchange's Henry Hub natural gas futures contract for the month in which a relevant cargo's delivery window is scheduled to begin IPM agreement integrated production marketing agreement in which the gas producer sells to us gas on a global LNG or natural gas index price, less a fixed liquefaction fee, shipping and other costs LNG liquefied natural gas, a product of natural gas that, through a refrigeration process, has been cooled to a liquid state, which occupies a volume that is approximately 1/600th of its gaseous state MMBtu million British thermal units; one British thermal unit measures the amount of energy required to raise the temperature of one pound of water by one degree Fahrenheit mtpa million tonnes per annum non-FTA countries countries with which the United States does not have a free trade agreement providing for national treatment for trade in natural gas and with which trade is permitted SEC U.S. Securities and Exchange Commission SOFR Secured Overnight Financing Rate SPA LNG sale and purchase agreement TBtu trillion British thermal units; one British thermal unit measures the amount of energy required to raise the temperature of one pound of water by one degree Fahrenheit Train an industrial facility comprised of a series of refrigerant compre

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS SABINE PASS LIQUEFACTION, LLC (in millions) (unaudited) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Revenues LNG revenues $ 1,857 $ 1,454 $ 4,124 $ 3,174 LNG revenues—affiliate 549 391 1,220 915 Total revenues 2,406 1,845 5,344 4,089 Operating costs and expenses Cost of sales (excluding operating and maintenance expense and depreciation and amortization expense shown separately below) 1,195 661 2,898 1,625 Cost of sales—affiliate 13 11 26 28 Operating and maintenance expense 256 176 431 349 Operating and maintenance expense—affiliate 123 121 247 244 Operating and maintenance expense—related party 13 16 28 29 General and administrative expense 1 2 3 3 General and administrative expense—affiliate 16 16 32 31 Depreciation and amortization expense 141 140 281 279 Other operating costs and expenses — — — 1 Total operating costs and expenses 1,758 1,143 3,946 2,589 Income from operations 648 702 1,398 1,500 Other income (expense) Interest expense, net of capitalized interest ( 103 ) ( 128 ) ( 208 ) ( 264 ) Loss on modification or extinguishment of debt — ( 3 ) — ( 3 ) Other income, net 2 3 5 6 Other income—affiliate 19 — 19 — Total other expense ( 82 ) ( 128 ) ( 184 ) ( 261 ) Net income $ 566 $ 574 $ 1,214 $ 1,239 The accompanying notes are an integral part of these financial statements. 2 Table of Contents SABINE PASS LIQUEFACTION, LLC BALANCE SHEETS (in millions) (unaudited) June 30, December 31, 2025 2024 ASSETS Current assets Restricted cash and cash equivalents $ 36 $ 109 Trade and other receivables, net of current expected credit losses 255 373 Trade receivables—affiliate 148 161 Trade receivables, net of current expected credit losses—related party — 1 Advances to affiliates 166 98 Inventory 134 131 Current derivative assets 28 84 Prepaid expenses 47 28 Other current assets, net 25 23 Other current assets—affiliate 2

NOTES TO FINANCIAL STATEMENTS

NOTES TO FINANCIAL STATEMENTS (unaudited) 7 NOTE 1— NATURE OF OPERATIONS AND BASIS OF PRESENTATION We are a Delaware limited liability company formed by CQP and based in Houston with one member, Sabine Pass LNG-LP, LLC, an indirect wholly owned subsidiary of CQP. We are an indirect wholly owned subsidiary of Cheniere Investments, which is a wholly owned subsidiary of CQP, a publicly traded limited partnership (NYSE MKT: CQP). CQP is a 48.6 % owned subsidiary of Cheniere, a Houston-based energy company primarily engaged in LNG-related businesses. Cheniere also owns 100 % of the general partner interest in CQP through ownership in Cheniere Energy Partners GP, LLC. We own natural gas liquefaction facilities with total production capacity of over 30 mtpa of LNG as of June 30, 2025 (the "Liquefaction Project" ) at a natural gas liquefaction and export facility located in Cameron Parish, Louisiana at Sabine Pass (the "Sabine Pass LNG Terminal" ). The Sabine Pass LNG Terminal also has five LNG storage tanks and three marine berths owned and operated by SPLNG, a subsidiary of CQP, and a 94 -mile natural gas supply pipeline owned and operated by CTPL, a subsidiary of CQP. Another subsidiary of CQP is developing an expansion project to provide additional liquefaction capacity adjacent to the Liquefaction Project, and it has commenced commercialization to support the additional liquefaction capacity associated with this potential expansion project. We do not have employees and thus we have various services agreements with affiliates of Cheniere in the ordinary course of business, including services required to construct, operate and maintain the Liquefaction Project, and administrative services. See Note 9—Related Party Transactions for additional details of the activity under these services agreements during the three and six months ended June 30, 2025 and 2024. Basis of Presentation The accompanying unaudited Financial Statements of SPL have been prepared in

NOTES TO FINANCIAL STATEMENTS—CONTINUED

NOTES TO FINANCIAL STATEMENTS—CONTINUED (unaudited) NOTE 2— TRADE AND OTHER RECEIVABLES, NET OF CURRENT EXPECTED CREDIT LOSSES Trade and other receivables, net of current expected credit losses, consisted of the following (in millions): June 30, December 31, 2025 2024 Trade receivables $ 242 $ 367 Other receivables 13 6 Total trade and other receivables, net of current expected credit losses $ 255 $ 373 NOTE 3— INVENTORY Inventory consisted of the following (in millions): June 30, December 31, 2025 2024 Materials $ 94 $ 95 Natural gas 25 22 LNG 14 13 Other 1 1 Total inventory $ 134 $ 131 NOTE 4— PROPERTY, PLANT AND EQUIPMENT, NET OF ACCUMULATED DEPRECIATION Property, plant and equipment, net of accumulated depreciation consisted of the following (in millions): June 30, December 31, 2025 2024 LNG terminal Terminal $ 16,527 $ 16,387 Construction-in-process 72 125 Accumulated depreciation ( 3,930 ) ( 3,652 ) Total LNG terminal, net of accumulated depreciation 12,669 12,860 Fixed assets Fixed assets 20 20 Accumulated depreciation ( 15 ) ( 15 ) Total fixed assets, net of accumulated depreciation 5 5 Property, plant and equipment, net of accumulated depreciation $ 12,674 $ 12,865 Depreciation expense was $ 140 million and $ 138 million during the three months ended June 30, 2025 and 2024, respectively, and $ 279 million and $ 276 million during the six months ended June 30, 2025 and 2024, respectively. NOTE 5— DERIVATIVE INSTRUMENTS We have commodity derivatives consisting of natural gas supply contracts, including our IPM agreement, for the operation of the Liquefaction Project and expansion project, as well as the associated economic hedges (collectively, the "Liquefaction Supply Derivatives" ). 7 Table of Contents SABINE PASS LIQUEFACTION, LLC

NOTES TO FINANCIAL STATEMENTS—CONTINUED

NOTES TO FINANCIAL STATEMENTS—CONTINUED (unaudited) The following table shows the fair value of our derivative instruments that are required to be measured at fair value on a recurring basis, distinguished by the fair value hierarchy levels prescribed by GAAP (in millions): Fair Value Measurements as of June 30, 2025 December 31, 2024 Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Liquefaction Supply Derivatives asset (liability) $ — $ — $ ( 1,147 ) $ ( 1,147 ) $ — $ 26 $ ( 1,307 ) $ ( 1,281 ) We value the Liquefaction Supply Derivatives using a market or option-based approach incorporating present value techniques, as needed, which incorporates observable commodity price curves, when available, and other relevant data. We include a significant portion of the Liquefaction Supply Derivatives as Level 3 within the valuation hierarchy as the fair value is developed through the use of internal models which incorporate significant unobservable inputs. In instances where observable data is unavailable, consideration is given to the assumptions that market participants may use in valuing the asset or liability. To the extent valued using an option pricing model, we consider the future prices of energy units for unobservable periods to be a significant unobservable input to estimated net fair value. In estimating the future prices of energy units, we make judgments about market risk related to liquidity of commodity indices and volatility utilizing available market data. Changes in facts and circumstances or additional information may result in revised estimates and judgments, and actual results may differ from these estimates and judgments. We derive our volatility assumptions based on observed historical settled global LNG market pri

NOTES TO FINANCIAL STATEMENTS—CONTINUED

NOTES TO FINANCIAL STATEMENTS—CONTINUED (unaudited) The following table shows the changes in the fair value of the Level 3 Liquefaction Supply Derivatives (in millions): Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Balance, beginning of period $ ( 1,275 ) $ ( 1,635 ) $ ( 1,307 ) $ ( 1,676 ) Realized and change in fair value gains included in net income (1): Included in cost of sales, existing deals (2) 73 106 59 98 Included in cost of sales, new deals (3) 7 7 5 7 Purchases and settlements: Purchases (4) — — — — Settlements (5) 48 27 96 76 Transfers out of level 3 (6) — — — — Balance, end of period $ ( 1,147 ) $ ( 1,495 ) $ ( 1,147 ) $ ( 1,495 ) Favorable changes in fair value relating to instruments still held at the end of the period $ 80 $ 113 $ 64 $ 105 (1) Does not include the realized value associated with derivative instruments that settle through physical delivery, as settlement is equal to the contractually fixed price from trade date multiplied by contractual volume. See settlements line item in this table. (2) Impact to earnings on deals that existed at the beginning of the period and continue to exist at the end of the period. (3) Impact to earnings on deals that were entered into during the reporting period and continue to exist at the end of the period. (4) Includes any day one gain (loss) recognized during the reporting period on deals that were entered into during the reporting period which continue to exist at the end of the period. (5) Roll-off in the current period of amounts recognized in our Balance Sheets at the end of the previous period due to settlement of the underlying instruments in the current period. (6) Transferred out of Level 3 as a result of observable market for the underlying natural gas purchase agreements . Liquefaction Supply Derivatives We hold Liquefaction Supply Derivatives, which are indexed to Henry Hub, global LNG or other natural gas price indices. As of June 30,

NOTES TO FINANCIAL STATEMENTS—CONTINUED

NOTES TO FINANCIAL STATEMENTS—CONTINUED (unaudited) The following table shows the fair value and location of the Liquefaction Supply Derivatives on our Balance Sheets (in millions): Fair Value Measurements as of Balance Sheets Location June 30, 2025 December 31, 2024 Current derivative assets $ 28 $ 84 Derivative assets 103 98 Total derivative assets 131 182 Current derivative liabilities ( 142 ) ( 250 ) Derivative liabilities ( 1,136 ) ( 1,213 ) Total derivative liabilities ( 1,278 ) ( 1,463 ) Derivative liability, net $ ( 1,147 ) $ ( 1,281 ) Balance Sheets Presentation The following table reconciles the fair value of our derivative assets and liabilities on a gross basis, by contract, to net amounts as presented on our Balance Sheets after offsetting for any balances with the same counterparty under master netting arrangements or other relevant netting criteria under GAAP (in millions): Liquefaction Supply Derivatives June 30, 2025 December 31, 2024 Gross assets $ 176 $ 228 Offsetting amounts ( 45 ) ( 46 ) Net assets $ 131 $ 182 Gross liabilities $ ( 1,283 ) $ ( 1,464 ) Offsetting amounts 5 1 Net liabilities $ ( 1,278 ) $ ( 1,463 ) We had a collateral balance of $ 19 million and $ 13 million that was recorded within other current assets, net, and not netted on our Balance Sheets, as of June 30, 2025 and December 31, 2024, respectively. NOTE 6— ACCRUED LIABILITIES Accrued liabilities consisted of the following (in millions): June 30, December 31, 2025 2024 Natural gas purchases $ 357 $ 558 Liquefaction Project costs 113 79 Interest costs and related debt fees 75 81 Other accrued liabilities 10 7 Total accrued liabilities $ 555 $ 725 10 Table of Contents SABINE PASS LIQUEFACTION, LLC

NOTES TO FINANCIAL STATEMENTS—CONTINUED

NOTES TO FINANCIAL STATEMENTS—CONTINUED (unaudited) NOTE 7— DEBT Debt consisted of the following (in millions): June 30, December 31, 2025 2024 Senior Secured Notes: 5.625 % due 2025 $ — $ 300 5.875 % due 2026 (the "2026 Senior Notes" ) (1) 1,500 1,500 5.00 % due 2027 1,500 1,500 4.200 % due 2028 1,350 1,350 4.500 % due 2030 2,000 2,000 4.746 % weighted average rate due 2037 (2) 1,782 1,782 Total Senior Secured Notes 8,132 8,432 Revolving credit and guaranty agreement (the "Revolving Credit Facility" ) — — Total debt 8,132 8,432 Current debt, net of unamortized discount and debt issuance costs (1) (2) ( 772 ) ( 351 ) Unamortized discount and debt issuance costs ( 45 ) ( 51 ) Total long-term debt, net of unamortized discount and debt issuance costs $ 7,315 $ 8,030 (1) In July 2025, we redeemed $ 1.0 billion aggregate principal amount outstanding of the 2026 Senior Notes using a $ 830 million equity contribution received from CQP and cash on hand. As a portion of the 2026 Senior Notes that were contractually due within one year was refinanced with a non-current equity contribution before the issuance of these Financial Statements, the $ 830 million redeemed with the equity contribution was classified as long-term debt as of June 30, 2025. (2) Includes notes that amortize based on a fixed amortization schedule as set forth in their respective indentures. Revolving Credit Facility Below is a summary of our Revolving Credit Facility as of June 30, 2025 (in millions): Revolving Credit Facility Total facility size $ 1,000 Less: Outstanding balance — Letters of credit issued 215 Available commitment $ 785 Priority ranking Senior secured Interest rate on available balance (1) SOFR plus credit spread adjustment of 0.1 %, plus margin of 1.0 % - 1.75 % or base rate plus 0.0 % - 0.75 % Commitment fees on undrawn balance (1) 0.075 % - 0.30 % Letter of credit fees (1) 1.0 % - 1.75 % Maturity date June 23, 2028 (1) The marg

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